Approach for Intercompany Billing with Detailed Subledgers

You enable detailed subledgers if you want to generate intercompany invoices. Before you use intercompany billing with detailed subledgers enabled, review the configuration checklists and the recommended guidelines for the procedures.

When you run the Intercompany Billing process, Deltek marks posting logs as Incomplete while intercompany billing is running so that other users do not try to process the same files. When the process is complete, these files are marked as Processed.

If the intercompany billing process does not complete as it should, the posting logs remain marked as Incomplete because the data in the files never finished processing. You can use the Reset Incomplete Files option to reset their status to the original state. After you reset the files, you can address the reasons for the incomplete processing and run the process again.

You need to complete the following steps in the sequence that they are listed here:

1. Set up invoice terms between two companies.
2. Select intercompany invoice options.
3. Run a draft run of intercompany billing with detailed subledgers.
4. Preview draft intercompany invoices and analyze the Intercompany Billing report.
5. Make corrections and repeat the preceding steps until you are satisfied that the data is accurate.
6. Run a final run of intercompany billing with detailed subledgers.
7. Print final intercompany invoices.

The final versions of the intercompany invoices and intercompany accounts payable vouchers you create are available in the Transaction Center. On the Transaction Entry form, intercompany files are identified as follows:

• In the Creator field you see Intercompany Billing (rather than a username)
• The filenames contain an ICBill prefix and display in this format:

  ICBill Invoice date company

  ICBill Voucher date company

Even if you chose Post intercompany transactions as they are generated, the subledger files (Invoice and AP vouchers) are not posted automatically. The company running intercompany billing will see the Invoice Transaction file. The company for will see the Accounts Payable Voucher Transaction file. When you post these files, the entries are only used to drive the corresponding subledger. There is no posting to the General Ledger. Deltek does not generate a General Ledger summary on the transaction posting logs. The general ledger is impacted by the labor adjustments and/or journal entries created by intercompany billing.

If the net of transactions for a given project/phase/task are zero in the functional currency for one company, but non-zero in the functional currency of the other company, as a result of currency exchange fluctuations, the net amount for the company having the non-zero balance is attributed to a currency exchange variance. If that case, the resulting journal entry moves the non-zero amount from the intercompany suspense account to a realized gain or realized loss account rather than to an intercompany AR or AP account. No intercompany invoice or voucher is generated in this situation.

If cash receipts posted by more than one other company, on behalf of a given project/phase/task owned by the billing company, are present in any cash receipt transaction postings being processed, draft Intercompany Billing invoices erroneously display all such cash receipts, without regard for the company being billed, on each of the intercompany invoices produced for the project/phase/task. For example, if a cash receipt on behalf of the project/phase/task has been posted by two different companies, the detail of both cash receipts will appear in the expense section of the two intercompany invoices produced. However, final invoices are not affected by this, and show the appropriate data on each invoice.

You can also preview and print invoices generated by the intercompany billing process from either the Invoice Review form or the Project Review form.

To view or reprint intercompany invoices from Intercompany Billing, you must have security access that allows you to do the following:

• Process intercompany billing in the originating company using the Intercompany Billing form
• Process transactions in prior and closed fiscal periods

To preview or print intercompany invoices from the Invoice Review form or the Project Review form, you do not need to have access to Intercompany Billing, to the originating company, or to prior and closed fiscal periods.